The nearly 700 removable aliens include workers at some of the nation’s largest poultry processing facilities. Here’s why it’s inflationary…
Can the Fed and the government hedonically adjust rising prices and claim that prices are falling because of the “quality of life improvement” consumers benefit from because they are eating food processed by lawfully employable workers, and this hedonic adjustment more than offsets any increase in prices at the grocery store?
It may seem ridiculous, but it would not surprise me one bit.
from Fox News:
More from Fox (bold added for emphasis):
U.S. Immigration and Customs Enforcement (ICE) said Wednesday that its officers had raided seven food processing plants in Mississippi and detained approximately 680 “removable aliens” in what a federal prosecutor described as “the largest single-state immigration enforcement operation in our nation’s history.”
In Morton, 40 miles east of Jackson, workers filled three buses — two for men and one for women — at a Koch Foods Inc. plant. Workers had their wrists tied with plastic bands and were told to deposit personal belongings in clear plastic bags. Agents collected the bags before they boarded buses. About 70 family, friends and residents waved goodbye and shouted, “Let them go! Let them go!” Later, two more buses arrived.
Koch Foods, based in Park Ridge, Ill., is one of the largest poultry producers in the U.S. and employs about 13,000 people, with operations in Mississippi, Alabama, Georgia, Illinois, Ohio and Tennessee. Forbes ranks it as the 135th largest privately held company in the U.S., with an estimated $3.2 billion in annual revenue. The Morton plant produces more than 700,000 tons of poultry feed a year, company officials said in February.
Immigration agents also hit a Peco Foods Inc. plant in Canton, about 35 miles north of Jackson. The company, based in Tuscaloosa, Alabama, says it is the eighth-largest poultry producer in the U.S. A company representative did not immediately respond to a telephone call or email seeking comment.
How is this inflationary?
This is going to cost the businesses a lot of time and money in making things right, and I’m talking about these food processing facilities having to possibly pay legal fees, potential fines from governmental authorities, hiring and training of new but legal workers, and many other costs yet to be accounted for.
And who will pay these costs?
Ultimately some of the costs will be paid by the company, but some of those costs will also surely be passed on to the consumer.
Additionally, if this significantly reduces production of food at these plants, especially chicken, and if the reduction is significant on a regional or national level, then there is no reason to think that supply and demand fundamentals will not kick in when it comes to the same demand chasing less available supply.
Politics aside, this is inflationary.
Locally, we will see contagion.
Aliens spend money too.
Are they plentiful?
Ain’t no easy fix.
Not at all.
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.